BILL NUMBER: AB 542	CHAPTERED  06/08/99

	CHAPTER   35
	FILED WITH SECRETARY OF STATE   JUNE 8, 1999
	APPROVED BY GOVERNOR   JUNE 8, 1999
	PASSED THE SENATE   MAY 25, 1999
	PASSED THE ASSEMBLY   APRIL 12, 1999
	AMENDED IN ASSEMBLY   APRIL 12, 1999
	AMENDED IN ASSEMBLY   MARCH 25, 1999

INTRODUCED BY   Assembly Member Reyes

                        FEBRUARY 18, 1999

   An act relating to the administration of unemployment
compensation, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 542, Reyes.   Employment Development Department:  federal
funds:  employment service program administrative costs.
   (1) Existing law permits the state, upon appropriation by the
Legislature, to requisition specified funds in the account of the
state in the federal Unemployment Trust Fund for use to pay expenses
incurred for the administration of unemployment compensation.
   This bill would appropriate $1,867,000 from the Unemployment Fund
from moneys requisitioned from the federal Unemployment Trust Fund
for use, subject to the limitations of specified federal law, for
administrative costs of the Employment Development Department
employment service program.  The appropriation would apply only to
expenses obligated during the period commencing with the effective
date of this act and ending June 30, 2000.
  (2) The bill would declare that it is to take effect immediately as
an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) Pursuant to Section 1528.5 of the Unemployment
Insurance Code, there is hereby appropriated from the Unemployment
Fund the sum of one million eight hundred sixty-seven thousand
dollars ($1,867,000) to be deposited in the Unemployment
Administration Fund for expenditure by the Director of the Employment
Development Department only for support of Employment Development
Department employment service program administrative costs.
   (b) Pursuant to subdivision (b) of Section 1528.5 of the
Unemployment Insurance Code, the moneys for the appropriation by this
act shall be requisitioned by the Director of the Employment
Development Department from moneys in the account of this state in
the Unemployment Trust Fund that are credited to that account
pursuant to Section 903 of the Social Security Act, as amended.
   (c) The moneys appropriated by this act may only be obligated for
expenses occurring from the effective date of this act to June 30,
2000, inclusive.
   (d) The total amount of the moneys appropriated by this act
obligated for expenses shall be limited to the restrictions specified
by, and charged in accordance with, Section 903(c)(2)(D) of the
Social Security Act, as amended.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to provide public service employment in areas affected by
the Valley freeze as soon as possible, by using Job Service 10
percent funds, and replacing those funds with federal Reed Act funds,
it is necessary that this act take effect immediately.
